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5/14, 9:09 AM (Source: TeleTrader)
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Fed may reconsider negative rates if second wave hits - Goldman

The Federal Reserve Bank (Fed) may be willing to reconsider negative interest rates in case the second wave of the coronavirus pandemic hit the United States, Zach Pandl, co-head of global foreign exchange, rates and emerging markets strategy at Goldman Sachs asserted on Thursday.

However, he stressed there is "pretty low probability" for the central bank to make such a move at this point.

"If the economy has another big setback ... where you have a second wave of infections and it would really take the recovery off course, then I do think that that opens up a possibility of a range of additional actions," Pandl told CNBC, adding that the interest rates have been the "main factor keeping the dollar well supported over the last few years."

Breaking the News / GA